Investment Clubs Manual064

Investment Clubs Manual064 - 55 October 2008 In either kind...

Info icon This preview shows page 1. Sign up to view the full content.

Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 55 October 2008 In either kind of issue, fractions may arise and companies do not issue fractions of shares In some instances the fractions are accumulated and sold by the company which may then remit a cash equivalent to entitled shareholders. Money received through such transactions is entered In the Cash Account under Sales of investments. It is shown as reducing the original cost of the shares in the Investment Record. Having dealt with the first eight columns. we now come to the remaining five which are used to provide the basic month~by-month information for the Monthly Assets Statement. The valuation date will be set monthly, or as often as the club meets, and will coincide with: a. The date on which the balance is calculated in the Cash Account; be The date to which the Members’ Capital Account is made up; c. The date the unit value is calculated for the next club meeting. The selling price per share makes allowance for the fact that the prices quoted in newspapers or on Teletext are middle prices, that is an average of buying and selling prices. As a rule it Is a fair approximation to deduct 1% from the published prices, rounding down to the nearest penny. The gross selling value ls simply the selling price multiplied by the number of shares held by the club. Selling expenses are an estimate of the costs that would be incurred by selling, primarily stockbroker’s commission and VAT. The net selling value Is obtained by deducting the selling expenses from the gross selling value. ProShare Investment Club THE MANUAL ...
View Full Document

  • Spring '10
  • Dr.Merker

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern